The head of the district administration explained that since the budget was introduced, the additional income of 7 million euros from key allocations had been eaten up by higher expenses for the accommodation and catering of refugees (2.9 million euros) and the loss of the subsidy to the clinics (3 million euros). Due to the expected hospital deficit of 11.6 million euros reported later and a 0.3 million euro increase in interest reimbursements, the deficit in the profit and loss account increased from 21.2 million euros to 33.6 million euros. However, the district is still expecting additional income from the autumn tax estimate and from the aid for refugees negotiated in the Joint Finance Commission. This will further reduce the shortfall.
According to District Administrator Allgaier, this is also urgently necessary "because the current crisis situation is exacerbating various budget risks that could lead to burdens on the 2023 budget". The crisis situation would be reflected first in the social budget: significantly more would have to be spent on refugees and the number of benefit communities for unemployment benefit II and, from next year, the new citizen's allowance would increase, as would the number of cases. For people in need, the higher number of cases would also result in higher expenses for care and health assistance. And in the area of youth welfare, the effects of the coronavirus pandemic on young people will be reflected in higher assistance requirements. Finally, the Federal Participation Act would mean considerable additional expenditure in practice. The financial impact of the changeover will only become clearer in the next six to twelve months. As things stand at present, the local state associations are expecting considerable additional expenditure of at least 100 million euros across the state. For example, costs for social participation - assistance services - are expected to rise by more than 60 percent. The increase in collective bargaining and material costs for fees as well as rising case numbers would continue to have an impact on expenditure for integration assistance. Taking the changes into account, the net expenditure in the social sector amounts to 252.9 million euros (2021: 218.2 million euros), stated District Administrator Allgaier.
District Administrator Allgaier also returned to the clinics. These are exposed to particular burdens such as various planning uncertainties in the budget preparation and delays in the care budget negotiations. The receivables from the care budget for 2020, which was only set in the fall of this year, would be paid in twelve monthly installments, meaning that the clinics would lack liquidity, which the district would then provide in part. Other challenges include the lack of staff. The district administrator hopes that the announced reforms will lead to relief for the clinics. However, he assumes that, at best, ongoing operations will be able to cover costs. "Due to the sharp rise in federal and state debt, I do not expect the state to meet its obligations with regard to covering investment costs in the foreseeable future. The urban and rural districts will still have to step in here," said Allgaier. It is therefore good that the district will be able to keep the debt in the core budget stable at just over 50 million euros in the 2023 budget in the financial planning period, as the hospital loans, for which the district is responsible for servicing the debt, will increase significantly due to extensive investments.
Finally, the district administrator went on to say that the district would also have to expect further increases in expenditure on local public transport. The total subsidy requirement had risen from 41.8 million euros in 2021 to 63.7 million euros in 2023. In addition to the coronavirus pandemic and higher energy prices, this is due to the fact that the district wants to increase the attractiveness of public transport in the interests of climate protection and is doing so in several different areas. The district is also making a financial commitment to the light rail system and the Strohgäubahn. In addition, the district is increasing the attractiveness of bus services and is supporting bus companies in the crisis with a rescue package so that they can maintain all necessary bus services in the future. "All this is not possible at zero cost, but only with high cost increases," said District Administrator Allgaier.
